Join Early Retirement Today
Reply
 
Thread Tools Display Modes
Hedge Fund Collapse..........
Old 09-27-2006, 10:06 AM   #1
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
FinanceDude's Avatar
 
Join Date: Aug 2006
Posts: 12,483
Hedge Fund Collapse..........

read in the WSJ the other day that Aranth (spelling?) Advisors took a big bet and lost.........and have lost 65% of their value............or 6.5 billion dollars...............

Brewer, any comment
__________________
Consult with your own advisor or representative. My thoughts should not be construed as investment advice. Past performance is no guarantee of future results (love that one).......:)


This Thread is USELESS without pics.........:)
FinanceDude is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Re: Hedge Fund Collapse..........
Old 09-27-2006, 10:14 AM   #2
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Mar 2003
Posts: 18,085
Re: Hedge Fund Collapse..........

They were idiots with little/no risk controls. Plain and simple.
__________________
"All animals are equal, but some animals are more equal than others."

- George Orwell

Ezekiel 23:20
brewer12345 is offline   Reply With Quote
Re: Hedge Fund Collapse..........
Old 09-27-2006, 10:16 AM   #3
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
FinanceDude's Avatar
 
Join Date: Aug 2006
Posts: 12,483
Re: Hedge Fund Collapse..........

Quote:
Originally Posted by brewer12345
They were idiots with little/no risk controls.* Plain and simple.
Makes sense.............what about LTCM? Those guys on paper were not idiots......
__________________
Consult with your own advisor or representative. My thoughts should not be construed as investment advice. Past performance is no guarantee of future results (love that one).......:)


This Thread is USELESS without pics.........:)
FinanceDude is offline   Reply With Quote
Re: Hedge Fund Collapse..........
Old 09-27-2006, 10:19 AM   #4
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Mar 2003
Posts: 18,085
Re: Hedge Fund Collapse..........

Quote:
Originally Posted by FinanceDude
Makes sense.............what about LTCM?* Those guys on paper were not idiots......
Caveat Emptor, as with all investments.
__________________
"All animals are equal, but some animals are more equal than others."

- George Orwell

Ezekiel 23:20
brewer12345 is offline   Reply With Quote
Re: Hedge Fund Collapse..........
Old 09-27-2006, 10:20 AM   #5
Thinks s/he gets paid by the post
 
Join Date: Jul 2003
Location: Pasadena CA
Posts: 3,339
Re: Hedge Fund Collapse..........

A good idea about why more common folks are headed into Hedge Funds from The Economist:
http://www.economist.com/finance/dis...ory_id=7912700

In part:
"And yet investors may be willing to gamble, despite the higher fees, because they desperately need high returns. The bear market between 2000 and 2002 brought a sober reassessment of the future returns likely from equities and bonds. With bonds yielding 4-5% and equities returning perhaps 3% on top, composite future returns of 6% or so looked inadequate. Peter Harrison, chief executive of MPC, a fund manager, says that American pension funds have analysed their liabilities. “They need more than 6% to make up the shortfalls in their funds. Whether they earn alpha or not, they have to roll the dice and try to get it."
__________________
T.S. Eliot:
Old men ought to be explorers
yakers is offline   Reply With Quote
Re: Hedge Fund Collapse..........
Old 09-27-2006, 11:54 AM   #6
Moderator Emeritus
Nords's Avatar
 
Join Date: Dec 2002
Location: Oahu
Posts: 26,855
Re: Hedge Fund Collapse..........

Quote:
Originally Posted by FinanceDude
Makes sense.............what about LTCM?* Those guys on paper were not idiots......
Bill Sharpe also says that it's a good thing the Nobel Committee can't reclaim their awards.
__________________
*

Co-author (with my daughter) of “Raising Your Money-Savvy Family For Next Generation Financial Independence.”
Author of the book written on E-R.org: "The Military Guide to Financial Independence and Retirement."

I don't spend much time here— please send a PM.
Nords is offline   Reply With Quote
Re: Hedge Fund Collapse..........
Old 09-27-2006, 12:09 PM   #7
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
FinanceDude's Avatar
 
Join Date: Aug 2006
Posts: 12,483
Re: Hedge Fund Collapse..........

Quote:
Originally Posted by yakers
A good idea about why more common folks are headed into Hedge Funds from The Economist:
http://www.economist.com/finance/dis...ory_id=7912700

In part:
"And yet investors may be willing to gamble, despite the higher fees, because they desperately need high returns. The bear market between 2000 and 2002 brought a sober reassessment of the future returns likely from equities and bonds. With bonds yielding 4-5% and equities returning perhaps 3% on top, composite future returns of 6% or so looked inadequate. Peter Harrison, chief executive of MPC, a fund manager, says that American pension funds have analysed their liabilities. “They need more than 6% to make up the shortfalls in their funds. Whether they earn alpha or not, they have to roll the dice and try to get it."
Haven't they heard of Vanguard??
__________________
Consult with your own advisor or representative. My thoughts should not be construed as investment advice. Past performance is no guarantee of future results (love that one).......:)


This Thread is USELESS without pics.........:)
FinanceDude is offline   Reply With Quote
Re: Hedge Fund Collapse..........
Old 09-27-2006, 12:14 PM   #8
Thinks s/he gets paid by the post
 
Join Date: Jul 2003
Location: Pasadena CA
Posts: 3,339
Re: Hedge Fund Collapse..........

Quote:
Originally Posted by FinanceDude
Haven't they heard of Vanguard??
I think The Economist article does somewhat explain why there is such a flow of money into hedge funds, even by some who should know better. And it is indeed a backhand endorsement of the Vanguard approach.
__________________
T.S. Eliot:
Old men ought to be explorers
yakers is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
The US as hedge fund calmloki FIRE and Money 1 03-05-2007 09:52 AM
Hedge Fund Collapses NinjaPigeon FIRE and Money 14 09-21-2006 10:26 AM
Anyone here a Hedge fund fan? mickeyd FIRE and Money 21 07-11-2006 02:10 PM
Hedge fund-like mutual fund: SWHEX brewer12345 FIRE and Money 2 11-01-2005 01:29 PM
Reading 'Collapse' got me thinking Nicholas Other topics 8 06-20-2005 10:13 PM

» Quick Links

 
All times are GMT -6. The time now is 01:12 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2024, vBulletin Solutions, Inc.